The proposed move by Toyota to make the UK as the production centre for the hybrid version of the Auris, will boost Britain's attempt to make itself as a European hub for production of "green" cars.

Auris is already being manufactured in the UK, in petrol and diesel-engine variants and sold 102,000 units last year in the country. The British government has also held talks with General Motors on the possibility of manufacturing its plug-in Volt car at its Ellesmere Port plant in the UK.

President Akio Toyoda, the grandson of the company's founder, had said at a press conference last month that the company would increase production of the hybrid in Europe since the European environmental regulations have become stricter and the carmaker will gradually shift its focus to the hybrid segment.